Automattic, the parent company of WordPress .com, Tumblr, and WooCommerce, has announced a significant workforce reduction, laying off 16% of its global staff. This decision impacts over 280 employees across 90 countries and is part of a broader restructuring initiative aimed at enhancing agility, efficiency, and product quality.
Reason behind the layoffsIn a memo to employees, CEO Matt Mullenweg explained that the restructuring was necessary to navigate the challenges of a competitive market and rapidly evolving technology. He emphasized the importance of improving productivity, profitability, and the company’s capacity to invest in its future. “We have reached an important crossroads,” Mullenweg stated, adding that the changes would help Automattic become more agile and responsive while ensuring a sustainable financial model.
Automattic has assured that affected employees will receive a comprehensive severance package , job placement assistance, and the option to retain their company laptops. The layoffs include some long-serving employees, highlighting the difficult nature of the decision.
Despite the layoffs, Mullenweg expressed confidence in Automattic’s ability to emerge stronger. “I’m confident we will come out of this situation in a better position, poised to create a vibrant, profitable, well-designed company that will continue our mission to democratize the internet,” he said.
Automattic layoffs : Read the complete memo shared by CEO Matt Mullenweg I have had to make difficult decisions to protect Automattic’s long-term future. This post will outline why the changes are happening and the next steps in our organizational restructuring. I wish to be transparent and acknowledge immediately that this will be difficult news to hear. We will do everything to ensure that all Automatticians, those staying and those leaving, are supported.
Why We’re Making Changes
We have reached an important crossroads. While our revenue continues to grow, Automattic operates in a highly competitive market, and technology is evolving at unprecedented levels. To support our customers and products, we must improve our productivity, profitability, and capacity to invest.
As difficult as this decision has been, we are restructuring the company to:
What This Means
This restructuring will result in an approximately 16% workforce reduction. HR will email those impacted to inform them they will leave Automattic with financial and support benefits.
Supporting Those Affected
This process is complex with Automatticians in 90 countries, but we’re committed to communicating clearly and compassionately. Colleagues who will be leaving will receive:
Looking Forward
Automattic has multiple products with world-touching potential in WordPress and beyond. I’m confident we will come out of this situation in a better position, poised to create a vibrant, profitable, well-designed company that will continue our mission to democratize the internet. I would ask that you take a moment to thank and appreciate the efforts of your teammates who have left the company, reflect on how you will move forward as an individual and Automattician, and join me in the vital work we have in front of us. I recognize this is a difficult time. In the coming weeks, we’ll share more about our path forward and how we’ll work together to strengthen our company.
We understand that you may wish to access support and discuss this with those close to you. I’d like to remind you that Automattic partners with Workplace Options, which provides emotional and practical well-being support if you seek advice from an external provider.
Reason behind the layoffsIn a memo to employees, CEO Matt Mullenweg explained that the restructuring was necessary to navigate the challenges of a competitive market and rapidly evolving technology. He emphasized the importance of improving productivity, profitability, and the company’s capacity to invest in its future. “We have reached an important crossroads,” Mullenweg stated, adding that the changes would help Automattic become more agile and responsive while ensuring a sustainable financial model.
Automattic has assured that affected employees will receive a comprehensive severance package , job placement assistance, and the option to retain their company laptops. The layoffs include some long-serving employees, highlighting the difficult nature of the decision.
Despite the layoffs, Mullenweg expressed confidence in Automattic’s ability to emerge stronger. “I’m confident we will come out of this situation in a better position, poised to create a vibrant, profitable, well-designed company that will continue our mission to democratize the internet,” he said.
Automattic layoffs : Read the complete memo shared by CEO Matt Mullenweg I have had to make difficult decisions to protect Automattic’s long-term future. This post will outline why the changes are happening and the next steps in our organizational restructuring. I wish to be transparent and acknowledge immediately that this will be difficult news to hear. We will do everything to ensure that all Automatticians, those staying and those leaving, are supported.
Why We’re Making Changes
We have reached an important crossroads. While our revenue continues to grow, Automattic operates in a highly competitive market, and technology is evolving at unprecedented levels. To support our customers and products, we must improve our productivity, profitability, and capacity to invest.
As difficult as this decision has been, we are restructuring the company to:
- Become more agile and responsive.
- Break down silos that have created inefficiencies.
- Focus on product quality, doing fewer things better.
- Ensure a viable financial model for long-term success.
What This Means
This restructuring will result in an approximately 16% workforce reduction. HR will email those impacted to inform them they will leave Automattic with financial and support benefits.
Supporting Those Affected
This process is complex with Automatticians in 90 countries, but we’re committed to communicating clearly and compassionately. Colleagues who will be leaving will receive:
- A comprehensive package covering severance pay and benefits.
- Retention of company laptops.
- Job placement resources.
Looking Forward
Automattic has multiple products with world-touching potential in WordPress and beyond. I’m confident we will come out of this situation in a better position, poised to create a vibrant, profitable, well-designed company that will continue our mission to democratize the internet. I would ask that you take a moment to thank and appreciate the efforts of your teammates who have left the company, reflect on how you will move forward as an individual and Automattician, and join me in the vital work we have in front of us. I recognize this is a difficult time. In the coming weeks, we’ll share more about our path forward and how we’ll work together to strengthen our company.
We understand that you may wish to access support and discuss this with those close to you. I’d like to remind you that Automattic partners with Workplace Options, which provides emotional and practical well-being support if you seek advice from an external provider.
You may also like
Max Verstappen confirms anger at Red Bull over Liam Lawson and Yuki Tsunoda swap
Fahad Mustafa's new Pakistani drama Parwarish: Start date, time
Lewis Hamilton and Charles Leclerc 'disgrace' leaves ex-Ferrari chief 'appalled'
Greenpeace activists climb Foreign Office building over signing of ocean treaty
'Trump a businessman, aur humara customer phas gaya': On US tariffs, Mallikarjun Kharge quips at PM Modi
